Federal Gift and Estate Tax Rates

Federal Gift and Estate Tax Rates

In general, the tentative federal gift or estate tax is calculated by referencing the taxable gift or estate to the following table. The net gift or estate tax is obtained by reducing the tentative tax by the amount of available unified gift or estate tax credit, credits for state and foreign death taxes, and gift taxes paid on certain prior transfers.

The federal gift tax return (Form 709) and federal estate tax return (Form 706) for current and prior years, accompanying instructions, and related publications can be found at the IRS web site.

Federal Gift and Estate Tax Rates for Transfers Occurring in 2011

Column A

Column B

Column C

Column D

Rate of tax

Taxable

Taxable

Tax on

on excess

amount

amount

Amount in

over amount

over--

not over--

Column A

in Column A

- - - -

$10,000

- - - - -

18%

$10,000

20,000

$1,800

20%

20,000

40,000

3,800

22%

40,000

60,000

8,200

24%

60,000

80,000

13,000

26%

80,000

100,000

18,200

28%

100,000

150,000

23,800

30%

150,000

250,000

38,800

32%

250,000

500,000

70,800

34%

500,000

750,000

155,800

35%

Top Gift and Estate Tax Rates for Years 2003 Through 2012

Top Gift

and Estate

Year

Tax Bracket

2003

49%

2004

48%

2005

47%

2006

46%

2007

45%

2008

45%

2009

45%

2010

35% (Gift Tax Only. Estate Tax Repealed)

2011

35%

2012

35%

The following table shows the amount that can is sheltered by the estate tax credit for the calendar year in which a decedent dies. These amounts would be reduced by prior lifetime taxable gifts for which the gift tax credit was used.